Expose on Debt Settlement Company

We’ve written extensively about the perils of using debt settlement companies here. Before dealing with one of these organizations, do your research. Here’s a video explaining the nightmares some debtors have encountered from working through debt settlement companies.

Beware Foreclosure Scams Part 1

The past few years have showed us that owners of homes in foreclosure may face a variety of potential pitfalls. One such pitfall is a foreclosure scam. These often take the form of solicitations from so-called real estate investors who would like to purchase the homes before the foreclosure process finalizes.

Much-Needed Debt Settlement Regulation

We’ve written a great deal about the abuses and excesses of debt settlement operations lately. Last month federal legislation was proposed to tighten the screws on unsavory practices in this industry.  It pointed out that while costs vary, ”a company might charge up to 20 percent of the total debt. Fees are usually demanded upfront, even [...]

How Debt Settlement Works

The nonprofit Consumer Credit Counseling Service of Orange County produced an excellent video on how debt settlement works — usually against you. We’ve written on this topic several times on our blog as well. If you decide to hire someone to help you settle, consolidate or otherwise manage your debts, then be very wary of [...]

Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?

All this talk about mortgage principal reduction and mortgage modification in the general press is incomplete and often confusing. People searching for answers can even find that information on government websites is too general for their specific needs. Take, for example, debt forgiveness income. This IRS page on The Mortgage Forgiveness Debt Relief Act and [...]

Cash for Keys, Neither Simple nor Straightforward

As my partner, Rick Mitchell, outlined in “Cash for Keys?” walking away from a mortgage obligation is neither simple nor straightforward. As with short sales, 90%+ of our clients have other debts in addition to the mortgage debt that’s addressed in a deed in lieu/cash for keys offer and those debts remain after a deed [...]

The Dark Side of Bank of America’s Mortgage-Principal Forgiveness Program

Bank of America announced it would offer mortgage-principal forgiveness worth about $3 billion to 45,000 borrowers. The jury is (literally) out on whether it will be an equally good day for homeowners who can’t pay their debts.

Cash for Keys?

The copywriter who thought up “Cash for Keys” did a good job. Unfortunately, the process isn’t as simple as the catchy title implies. You don’t simply hand the keys over to the mortgage company, take your $1000 to put down on an apartment and walk away. Unless you file for bankruptcy protection, any time you [...]

Debt Consolidation/Relief Part 2 of 2

In the first part of this series, we covered the misleading things that businesses advertise on television, radio and elsewhere for “debt consolidation” or “debt settlement” services. If you decide to enter into an agreement with a creditor, or want to fix a bad credit score keep these five things in mind. How to proceed [...]

Debt Consolidation/Relief Part 1 of 2

Hardly a day goes by without seeing on television, or hearing on the radio, a commercial for “debt consolidation” or “debt settlement” services. Often, the ad includes a statement to the effect that if you owe more than $10,000.00 in credit card debt, you have the “legal right” to settle for less. Further, we frequently [...]

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